E-invoicing/ E-receipting requirement that affects businesses that are engaged in e-commerce and export and those classified as large taxpayers

Section 237-A of the National Internal Revenue Code (NIRC), as amended through Republic Act (RA) 10963 or the “TRAIN” Law is a talking point nowadays as the BIR tapped the country’s top 100 large taxpayers to launch the e-invoicing. This is to address the issue of compliance and business transactions transparency by introducing the New Electronic Invoicing Systems (EIS) which requires taxpayers in e-commerce, large taxpayers, and exporters to electronically issue invoices/receipts and report their sales data. Under the law, the aforementioned taxpayers are required to adopt the electronic sales reporting system within five (5) years from the effectivity of the TRAIN Law i.e., on or before 01 January 2023.

Further, an invoice report will be sent to the Government platform after invoices have been sent to final clients. The electronic invoice includes sales invoices, receipts, debit and credit notes, and other similar accounting documents issued through the internet.

By implementing EIS, BIR aims to lessen VAT tax fraud and make tax compliance easier for taxpayers and tax authorities. The relevant revenue regulation and circulars on e-invoicing/receipting have yet to be issued by the Department of Finance (DOF).

Taxpayers may voluntarily register in lieu of manual receipts even if they are not listed as being covered by EIS.

For everyone’s guidance and perusal.

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